Stg hits 6-3/4 yr low vs dlr; pares losses on UK rate cut

* Pound hits 6-3/4 yr low vs dlr; euro/stg at all-time low

* BoE cuts rates by 100 bps, says downturn has gathered pace

* Analysts say more UK cuts could come next year

By Harpreet Bhal

LONDON, Dec 4 (Reuters) - Sterling hit an all-time low against the euro and a 6 3/4-year trough against the dollar on Thursday, staying weak after the Bank of England cut interest rates by 100 basis points to shore up the faltering UK economy.

The BoE slashed rates as expected to 2 percent, their lowest level in more than half a century, and said that further cuts may be needed to deal with tight credit conditions, while the economy continues to weaken [nL4304319].

In a statement accompanying its interest rate decision, the BoE warned the economic downturn had gathered pace, raising the stakes for the central bank to deliver more cuts to shore up confidence in the UK economy.  Continued...